Question
Which of the following statements about bonds is correct? a.The cash interest paid is calculated as the bond face value the face rate of interest.
Which of the following statements about bonds is correct?
a.The cash interest paid is calculated as the bond face value the face rate of interest.
b.The difference between the interest expense and the interest paid is deducted from the carrying value of the bonds if bonds were sold at a discount.
c.The difference between the cash interest paid and the interest expense is added to the carrying value of the bonds if bonds were sold at a premium.
d.The cash interest paid is calculated as the bond face value the effective rate of interest.
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The Quality Audit Handbook
Authors: Asq Quality Audit Division, J. P. Russell
2nd Edition
087389460X, 978-0873894609
